LAWRENCE: Council OKs water rate deal

By Lea Kahn,Staff Writer
   Township Council unanimously approved a settlement agreement Tuesday, ending its long-running battle with the City of Trenton over the operation of the Trenton Water Works utility that supplies water to residents in the southern end of the township.
   Mayor Jim Kownacki and council members Cathleen Lewis, David Maffei and Michael Powers approved the resolution authorizing the settlement of the lawsuit, which was filed in 2008. Councilman Greg Puliti was absent.
   Municipal Manager Richard Krawczun outlined the settlement agreement for Township Council. He said that it was his recommendation that the council approve the document and “put the matter to rest.”
   Lawrence joined Ewing, Hamilton and Hopewell townships in filing a lawsuit against Trenton while the city was attempting to sell the Trenton Water Works to New Jersey American Water Co. to raise revenue. The sale failed after Trenton voters blocked the sale of the water utility in 2010.
   The lawsuit challenged a 40-percent water rate hike passed on to the townships, as well as the city’s practice of transferring money from the water utility system to its general fund instead of using the money for the benefit of the water utility and its customers.
   The settlement agreement, which has also been approved by Ewing, Hamilton and Hopewell townships, calls for the City of Trenton to credit $513,015 to Lawrence Township, which is the amount it had been overcharged (under the 40-percent rate increase) for the cost of water for fire hydrants between 2008 and 2011.
   A decision has not been made how to handle the $513,015 credit, Mr. Krawczun said. The city is not writing a check to the township. It is a credit.
   Mr. Krawczun told Township Council that the agreement will “improve transparency” between the water works and its customers in the four townships. It allows the townships to review the list of improvement projects inside and outside of the city limits, for example.
   City officials must provide information regarding the transfer of money from the water utility to the city’s general fund, Mr. Krawczun said. And the city must provide 60 days’ notice to the townships before it adopts a rate increase for the water utility.
   The settlement agreement preserves the four townships’ ability to challenge the city’s future operation of the Trenton Water Works, rate increases and the transfers of surplus and contributions billed or appropriated to the water utility by the city, effective after the settlement has been approved.
   Councilman Michael Powers praised Mr. Krawczun for helping to solve the issue, noting that the municipal manager was “intimately involved” in the settlement proceedings.
   Trenton city officials could not be reached for comment.